BOE Risks Losing Control Over Pound, Hedge Fund Giant Balyasny Says (Bloomberg)
The Bank of England’s dramatic intervention to control bond yields earlier this week threatens the central bank’s fight to contain inflation and prevent a decline in pound, according to hedge fund giant Balyasny Asset Management. While the BOE’s move to avoid a potential crash in the gilt market by pledging unlimited purchases of long-dated bonds on Wednesday has stabilized the markets, the $16.6 billion money manager said the move is a demonstration of the government’s “policy misstep”.
Kwasi Kwarteng’s Ex-Boss Bet Big on Falling Pound Weeks After Lunch with Him (The Times)
Kwasi Kwarteng had a private lunch during the Tory leadership contest with a hedge fund boss who once employed him. Crispin Odey, a hedge fund manager who has profited from the fall in the value of the pound and government debt, met Kwarteng at his home in London on July 17, when there were still six candidates in the running for the Tory leadership. Truss, the candidate who Kwarteng backed, made it to the final two on July 20.
Oaktree Capital’s Danielle Poli is Navigating the Credit Markets During One of Its Trickiest Periods. But the Portfolio Manager Reckons Today’s Volatility can Produce ‘Double-Digit’ Returns in Fixed Income. (Business Insider)
Danielle Poli, a co-portfolio manager of Oaktree’s diversified-income fund, has been on a bit of a whirlwind tour of late. When she sat down for an interview with Insider, Poli had just arrived from California, her home state. She had just wrapped up other media appearances, and was mere hours away from boarding a flight to Australia, where she was scheduled to talk shop with institutional clients.
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US Recession is a Matter of When Not If, Says Citadel Boss (Hedge Week)
Billionaire hedge fund investor Ken Griffin believes that a US recession is inevitable and could happen as soon as next year, according to a report by the Financial Times. Speaking at CNBC’s Delivering Alpha conference in New York yesterday, the Citadel boss said that the only uncertainty is how hard the recession will be. And he believes the US Federal Reserve needs to do more to tackle inflation despite having raised its its benchmark rate by 0.75 percentage points for the third time in a row.
New Activist Hedge Fund Thinks Barnes Group Could Be Worth Double in a Sale – Report (Investing.com)
Shares of Barnes Group (NYSE:B) rose 3% in early trading Friday after a new activist hedge fund, Irenic Capital Management, reportedly built a stake in the company and will push for board changes and a potential sale. Irenic told Barnes management that the company could fetch up to $60 per share in a sale or more than double the current price, Bloomberg News reported citing people familiar with the matter.
A Down 2022, Less Impact Fund Terms More on Returns (Preqin)
As inflation, high rates, and war each take their toll on private capital returns, how managers emerge from the cycle will determine their future success. What impact will current market conditions, which include down equity markets, rising inflation, and rising interest rates, have on alternative assets? Rising rates will for sure have an impact on the cost of capital while inflation will erode returns.
Scale Venture Partners Raises $900m for Its Biggest Fund Yet (Opalesque)
Silicon Valley-based venture capital firm Scale Venture Partners just raised its largest fund ever. It raised $900 million for its eighth venture fund. Scale plans to use the money to back cloud and software-as-a-service startups, with an emphasis on cognitive apps. The fund was subscribed by a combination of existing and new investors, said a press release from the early-stage venture capital firm. Scale Partner Rory O’Driscoll said: “The last nine months have been a sea change in terms of the funding environment but tech innovation remains strong. Valuations are impacted by interest rates but innovation is not. That is the long-term bet we are all making, entrepreneurs and investors alike.”
Hedge Fund Elliott Tightens Swedish Match Grip With 7.25% Stake (Bloomberg)
Hedge fund Elliott Investment Management continued to increase its stake in Swedish Match AB and has emerged as the biggest single shareholder in the Swedish smokeless tobacco company, further threatening the takeover bid from Philip Morris International (PMI). Regulatory filings showed for the second day in a row on Friday that Elliott had upped its stake in Swedish Match and now holds 7.25% of the votes. Earlier this month, Bloomberg reported that some of the world’s largest hedge funds had built holdings in Swedish Match with the aim of forcing PMI to sweeten its offer.
Friday 9/30 Insider Buying Report: COIN, IGMS (Nasdaq.com)
At Coinbase Global, a filing with the SEC revealed that on Tuesday, Director Tobias Lutke purchased 5,941 shares of COIN, at a cost of $65.29 each, for a total investment of $387,888. Bargain hunters have the opportunity to grab COIN at a price even lower than Lutke did, with shares trading as low as $61.07 in trading on Friday — that’s 6.5% below Lutke’s purchase price. Coinbase Global is trading up about 2% on the day Friday. Before this latest buy, Lutke bought COIN on 7 other occasions during the past twelve months, for a total investment of $2.56M at an average of $74.53 per share. And on Wednesday, Director Michael D. Loberg purchased $139,539 worth of IGM Biosciences, purchasing 6,679 shares at a cost of $20.89 each. Before this latest buy, Loberg made one other purchase in the past year, buying $499,997 shares at a cost of $23.00 each. IGM Biosciences Inc is trading up about 18.1% on the day Friday.
Over $352 Million Bet On Occidental Petroleum? 3 Stocks Insiders Are Buying (Benzinga)
Tricida: The Trade: Tricida, Inc. (TCDA) 10% owner Nimish Shah acquired a total of 587,214 shares an average price of $8.90. To acquire these shares, it cost around $5.23 million. Occidental Petroleum: The Trade: Occidental Petroleum Corporation (OXY) 10% owner Warren E Buffett acquired a total of 5,985,190 shares at an average price of $58.89. To acquire these shares, it cost around $352.49 million.
